More speculation on our IMF package

Monday, 5 Feb 2024

More speculation on our IMF package

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Today at a glance

Economy

Goldman Sachs sees a USD 12 bn IMF package in our future.

Tax

Gov’t to look into trimming list of taxes to boost local industry + curb inflation.

PHARMA

Drugmakers want to raise prices.

Last Night’s Talk Show

Why EGP has strengthened on black market.

What We're Tracking Today

It’s PMI day.

Also on our Radar

We could be looking at up to 11 new freezones.

EARNINGS WATCH

Eastern Company’s bottomline down 17% y-o-y.

PLANET FINANCE

Investors have given up on Chinese stocks.

BLACKBOARD

What is Egypt doing to increase STEM schools across the country?

What We're Tracking Today

Egypt’s PMI figures for January out today

Good morning, ladies and gentlemen, and happy Monday. The news flow has slowed down a little bit today as everyone sits tight waiting for the IMF agreement.

ALSO- The 2024 Grammys were still underway as we hit dispatch. Music’s biggest night kicked off late last night and some of the biggest awards have already been handed out —- Miley Cyrus took home best pop solo performance for her single Flowers and Taylor Swift won best pop vocal album for Midnights.

** Wait for our full coverage in today’s EnterprisePM.

PSA-The state’s foreign investment portal is here: Foreign investors can now inquire about potential investments in the country’s new cities — on the provision that they invest USD transferred from abroad — through the New Urban Community Authority’s (NUCA) foreign investment portal that went live yesterday, according to a Housing Ministry statement.

DATA POINT

Egypt’s agricultural exports hit a record high of 7.4 mn tons in 2023, almost 1 mn tons up from the year before and bringing in a total USD 3.7 bn, Agriculture Minister El Sayed El Quseir told the Senate. Citrus fruits, potatoes, and onions led the country’s exports for the year.

HAPPENING TODAY-

#1- It’s PMI day: S&P Global will publish Egypt’s PMI figures for January at around 7:15am CLT this morning. The index last clocked in at 48.5 in December, marking the 37th straight month the country's non-oil economy has been in contraction.

#2- CBE to hold USD T-bill auction: The Central Bank of Egypt (CBE) will auction USD 1 bn worth of one-year T-bills today with settlement scheduled for the next day, according to data on its website.

The first auction of the year: The CBE last auctioned off USD T-bills on the last day of 2023, selling USD 850 mn of USD-denominated one-year treasury bills at an average yield of 5.149% to refinance existing debt.

HAPPENING THIS WEEK-

#1- Attention, bookworms: The Cairo International Book Fair closes its doors tomorrow. If you haven’t gotten the chance to visit the fair yet, you can check it out today or tomorrow between 10am to 8pm. The fair is being held at the Egypt International Exhibitions Center.

#2- Gold tender deadline: The deadline for the — three times extended — international gold and minerals exploration tender from the Shalateen Mining Company is this Thursday.

CIRCLE YOUR CALENDAR-

Tech startups can now apply for DMZ’s incubator program — an eight-month incubation program, offering grants of up to EGP 200k and coaching from experts. Eligible startups offer an innovative tech solution, have a “coachable team,” have a full time founder, and are willing to work in Cairo. Applications are open until Tuesday, 12 March. Read more and apply here.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

THE BIG STORY ABROAD-

There’s no single BIG STORY ABROAD this morning, as is often a case on Mondays.

In the business pages, you have your choice between a Financial Times report that claims Iran used accounts at Lloyds and Santander to sidestep western sanctions while the Wall Street Journal continues to go deep on Elon Musk with The money and drugs that tie Elon Musk to some Tesla directors. (Missed the first part? Tap or click here.)

In foreign affairs: A range of global media organizations are trying to articulate a clear US foreign policy toward the Middle East as Secretary of State Antony Blinken heads back to this part of the world. The New York Times’ Tom Friedman is still pushing his notion of a “Biden Doctrine,” while the Wall Street Journal writes that Washington is “pairing military action with diplomacy” in a bid to reshape our corner of the world. The pillars: “rolling back Iranian influence by resolving Gaza conflict, pushing Israel-Saudi normalization, and establishing a Palestinian state.”

The US struck Houthi positions in Yemen for a third day in a row yesterday. A top US national security official said yesterday that wider attacks against Iran-backed groups in the region would continue. US strikes have so far hit groups in Yemen, Iraq, and Syria.

ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at how the pharma industry is dealing with the perfect storm of mandatory pricing and FX pressures making it harder to do business. Check it out here.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We take a look at what Egypt is doing to increase its number of STEM system schools.

Tags:

PMI What We're Tracking Today

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Economy

Goldman Sachs, Morgan Stanley weigh in on Egypt’s IMF agreement

More predictions on our IMF package roll in: Goldman Sachs and Morgan Stanley both had things to say about our IMF package, hinting that we’re moving closer to an agreement.

Goldman Sachs sees a USD 12 bn loan in our future: Goldman Sachs sees the IMF increasing the size of our assistance program to USD 7 bn, the bank said in a note. The bank also sees the Egyptian government receiving some USD 5 bn from international and regional partners, bringing our total funding to USD 12 bn.

Most expectations are within this range: While there hasn’t been much of a consensus on the size of the package, Enterprise sources with knowledge have put it in the USD 6-9 bn ballpark. Egypt has recently wrapped up talks with an IMF delegation in Cairo where they made progress on the details of the agreement.

The IMF and Egyptian officials have reached a preliminary agreement on the new loan, which would include the long-stalled first and second reviews of our initial USD 3 bn agreement, according to Goldman Sachs, but the staff-level agreement may take a few weeks.

Why the additional funds? Egypt faces a USD 8 bn financing gap and needs some USD 17 bn to stabilize the exchange rate, the bank said. This brings the country’s total financing needs for the next four years to USD 25 bn.

But it won’t be enough: “We believe it is highly unlikely that the additional funding that will be made available to Egypt under the new program will cover [Egypt’s financing needs],” the bank said. The bank points to the state privatization program and other financing strategies to help fill what will remain of the financing gap.

The Morgan Stanley take: The bank believes that the CBE’s decision to hike interest rates by 200 basis points last Thursday paves the way for policymakers to devalue the EGP and seal the IMF agreement as the country moves to an “inflation-targeting framework” in line with the fund’s requirement, the bank said in a report. The bank expects the CBE to enact a limited devaluation at first, before gradually scaling it up to a more flexible rate.

The markets are in desperate need of some clarity: Just days after dipping to record lows in the parallel and derivative markets — changing hands at 70 to the USD — the EGP slightly strengthened with the USD currently changing hands for anywhere between EGP 48-56, according to local media. This discrepancy between prices is likely the result of the CBE’s rate hike and anticipation of when Egypt and the IMF may wrap up their agreement sending markets into panic.

AND- Investors ditch EGX stocks in anticipation of devaluation: Egyptian stocks lost around EGP 40 bn of their market value on Sunday, falling to EGP 1.97 tn, as investors anticipated the movement of the EGP / USD exchange rate and parallel market prices, Naeem Brokerage’s Allen Sandeep told Asharq Business. The EGP currently stands at anywhere between 62-66 to the USD on the parallel market, traders told Asharq.

Temporary dips: Egyptian stocks are moving in tandem with the black market exchange rate, Thndr Securities’ Amr Elalfy said. “Egyptian stocks are far from their true valuations,” Elalfy said, adding that he expects stock prices to rise following the devaluation announcement and “provision of USD liquidity into the market.”

Tags:

economy Goldman Sachs IMF Morgan Stanley

Tax

Egypt’s government to look into trimming list of taxes to boost local industry, curb inflation

The long list of taxes may get shorter? The government has formed a committee to look into reducing the long list of taxes, customs, and fees imposed on goods and services, a senior government source told Enterprise. The committee will meet this week to review a list of taxes and fees, the source added.

The why: The proposed tax cuts seek to boost local industry, increase exports, attract new investments, and curb inflation by eliminating double taxation and redundant fees that see some goods taxed at up to 45%, the source explained.

How will FinMin make up for lost tax revenue? The Finance Ministry plans to bolster tax revenues by widening its tax base and clamping down on tax evasion, our source said. Moreover, a plan to scrap tax exemptions given to state companies could help the government raise an estimated EGP 600 bn, more than half of the annual EGP 1.1 tn it aims to collect in the current fiscal year. Taxes account for 80-85% of the government’s total revenues, according to the source.

ICYMI- The cabinet last week greenlit the executive regulations for the law scrapping tax exemptions previously granted to state entities and public-sector companies and projects. The bill cancels long-criticized preferential treatment that tipped off the competition balance between public and private sectors and aims to level the playing field for investors.

Tags:

Finance Ministry tax

PHARMA

Drugmakers want to raise prices amid FX crunch

Drugmakers will meet next week with theEgyptian Drug Authority (EDA) to request hiking their prices, a source in the pharma sector with knowledge of the matter told Enterprise. Drugmakers want to increase prices by 30-50% in response to ongoing FX and raw materials shortages and higher shipping costs.

The rationale: Disruptions to shipping in the Red Sea have forced pharma companies to resort to the pricier air cargo alternative, the source tells us. Meanwhile, some 1.5k drugs — 9% of the total 17k sold in Egypt — have been hit by the shortage of raw materials.

Further strains on the state budget: The price increases go for all pharma sales, those made to the private healthcare sector and the public healthcare sector. Pharma companies also want to ditch fix-price contracts with the government and have the state pay a 40% premium on already in effect contracts. Half of their desired increase — 20% — has been approved, while the remainder of the hike is still pending approval, the source said.

The government is working to address the shortage: Prime Minister Moustafa Madbouly said earlier this week that his cabinet is working to ensure the availability of pharma products and medical equipment, calling for an increase in reserves and stockpiles of critical meds.

Tags:

Egyptian Drug Authority pharma

A MESSAGE FROM HSBC

India-MENAT corridor has USD 100 bn in untapped trade potential

Investors and corporates in India and across the Middle East, North Africa, and Türkiye (MENAT) are set for a decade of accelerated opportunity, according to a new report (pdf) by HSBC entitled India-MENAT Corridor Outlook: Harnessing Natural Synergies. The report considers the current state of trade and investment and the key growth opportunities between India and five countries in MENAT — Egypt, Qatar, Saudi Arabia, Türkiye, and the UAE.

“Buoyed by strong mutual interests, solid economic fundamentals, and enduring historical ties, corporates and investors are looking at an extensive set of opportunities in both directions,” said Regional Head of Commercial Banking, Middle East North Africa and Türkiye (MENAT) Patricia Gomes at HSBC Bank Middle East.

Indian corporates succeeding in the Middle East: The Middle East’s ambitious transformation plans and the region’s youthful demographics — more than half of whom are under 30 years of age — are attracting Indian investment. Data from the International Trade Centre and HSBC analysis show there is an estimated USD 61 bn export potential for India in key MENAT markets.

India’s increasing strength as a food and agricultural producer and exporter are re-positioning the India-GCC trade and investments relationship. Technological developments are transforming the GCC's food and agriculture industry, and considerable sums are being invested to promote food security. The India-UAE food corridor has seen over USD 7 bn of investment since plans were initiated in 2019.

The Indian diaspora in the GCC is deepening regional capital, talent, and technological ties. Around 8.8 mn non-resident Indians now reside in the GCC, and represent the largest real estate investors in Dubai, overtaking British expats.

Outside of the GCC, India continues to do lucrative business in new areas of the economy with the other countries in MENAT. In Egypt, Indian companies are investing in green hydrogen and electric vehicles, as well as in more traditional sectors such as food, chemicals, and tourism. India's automobile companies are also present in Türkiye, where Indian manufacturers have also invested heavily into the packaging materials industry.

MENAT corporates making inroads in India: India’s strong economic fundamentals are attracting MENAT corporates that are expanding their trading relationships overseas, with an estimated export potential of over USD 51 bn from key MENAT countries into India.

Understanding India's expansive physical landscape is also helping MENAT corporates narrow down their investments. Tier-1 cities are key drivers of India’s economic growth and just six of these eight cities contributed 28% of India’s GDP in 2022.

But don’t rule out India’s Tier-2 cities: “India’s Tier-2 cities have untapped potential for MENAT corporates considering lower operational costs, niches for specific industrial activities, or shifting ancillary operations,” Gomes said.

India’s place in the global economy is changing: While India is still a close trading partner for the MENAT region in goods such as spices, gold, and textiles, the South Asian country is also rising in global prominence in manufacturing, technology, and science. India’s digital economy presents multiple promising investment options for MENAT corporates, underpinned by strong growth forecasts from a 0.5% share of GDP in 2010 to 13% by 2030.

Trade agreements hold further promise: The trade and investment relationship between India and MENAT are set to increase also because of trade agreements like 2022’s India-UAE Comprehensive Economic Partnership Agreement (CEPA), which was negotiated and concluded in just 88 days, reducing or eliminating tariffs in over 80% of bilateral product lines. In addition to this, the India-Middle East-Europe Economic Corridor (IMEC) announced in September 2023, is a further trade proposal which would connect the Middle East and Europe to India by new rail and shipping links.

Tags:

A MESSAGE FROM HSBC HSBC India trade

Diplomacy

Egypt’s Foreign Minister Sameh Shoukry meets with French counterpart Stéphane Séjourné

Shoukry + Séjourné: French Foreign Minister Stéphane Séjourné voiced his rejection of the forced displacement of Gazans into Egypt during a joint presser with (watch, runtime: 18:27) Foreign Minister Sameh Shoukry in Cairo yesterday. Séjourné also called for a humanitarian ceasefire and for the relaunch of diplomatic talks over a two-state solution. Shoukry called for coordinated efforts to end the war and for a clear timetable for the establishment of a Palestinian state.

SPEAKING OF GAZA- Israel strikes Rafah: Israel yesterday launched strikes on Gaza’s southern city of Rafah — the last refuge for over a mn displaced Palestinians that has been dubbed a “ pressure cooker of despair ” by the UN. The strikes came a day after the EU urged Israel not to press ahead with an assault on the city bordering Egypt. (The National | France24 | Associated Press)

MEANWHILE, IN THE RED SEA-

#1- Red Sea disruptions are regionalizing the global oil market: Countries are looking to closer neighbors for oil shipments as Houthi attacks on vessels crossing the Red Sea drive up freight rates, Bloomberg reports.

#2- US promises more attacks: The US plans to wage “additional strikes” on Iran-backed groups in the region, White House national security advisor Jake Sullivan said on NBC News last night. The US launched retaliatory attacks across Yemen, Iraq and Syria over the weekend in response to the killing of three US servicemen in Jordan last week.

#3- Not all in Washington are happy about US protection of foreign-flagged vessels: While the US Navy currently protects all foreign-flagged ships passing along the Red Sea, some voices within Congress are calling for US ships to take priority, challenging the unilateral decision made by President Biden to offer equal protection to ships, CNBC reported. The problem with these demands? 97.2% of US trade is carried on vessels of a foreign identity.

Tags:

DIPLOMACY France Israel-Palestine conflict Red Sea Sameh Shoukry

EARNINGS WATCH

Egypt’s Eastern Company reports 17% y-o-y drop in 1H FY 2023-24 bottomline due to fall in cigarette sales

Eastern Company’s bottomline falls due to drop in cigarette sales: The tobacco giant saw its bottomline fall 17% y-o-y in the first half of the fiscal year 2023-2024 to EGP 2.9 bn, it said in its latest earnings release (pdf). The EGX-listed company attributed the fall in net income to “decreases in local cigarette sales segment volume by 43% y-o-y,” which contributed to revenues dropping 20% y-o-y in the same period to EGP 7.9 bn.

But the company saw a rebound on a quarterly basis, recording a 58% q-o-q jump in net income in 2Q FY 2023-24 to EGP 1.8 bn. Revenue also increased on a quarterly basis, jumping 54% on the back of a 62% increase in the value of the local cigarette sales.

ICYMI- The Madbouly government completed the sale of a 30% stake in Eastern Company in November for USD 625 mn to UAE-based Global Investment Holding — one of the largest transactions for the country’s privatization strategy after it restarted the program last year.

Tags:

earnings watch Eastern Company

LAST NIGHT’S TALK SHOWS

Egypt’s EGP has strengthened against the USD — the nation’s talking heads explain why

It was a one-woman show on the airwaves last night, with Kelma Akhira’s Lamees El Hadidi giving us the only coverage worth noting on recent volatility in the USD exchange rate on the parallel market.

The EGP / USD exchange rate on the black market is falling after last week’s spike. The EGP strengthened slightly against the greenback for the second day in a row to reach 56-55 against the USD, compared to the never before seen EGP 70 rate it was trading at a few days ago, El Hadidi said (watch, runtime: 10:25).

Behind the fall: People believe that the state is in line for a fresh supply of USD, El Hadidi said. “For one, the Ras El Hekma development project — which hasn’t actually been confirmed by the government yet — and upcoming financial packages from the IMF and EU have pushed people to believe that the CBE will pour more USDs into the banking sector, helping tame the black market exchange rate,” El Hadidi explained.

“It’s clear that the parallel market is fragile. The parallel market exchange rate rises due to speculation, anxiety, and the lack of information and declines as rumors spread and expectations change over the imminent availability of USD,” El Hadidi said. The solution to the current crisis lies in “the existence of a real economy that generates USD flows,” she added.

The gold market reacts: Local gold prices fell around EGP 800-1k per gram, coinciding with the decline in the price of the USD in the parallel market, El Hadidi added.

AND IN FOOTBALL NEWS- The Pharaohs part ways with their coach: The Egyptian Football Association has let go of the national team’s Portuguese coach, Rui Vitoria, and appointed former Al Ahly coach Mohamed Youssef as the team’s interim manager until a foreign coach is chosen. The decision came after the Pharaohs’ disappointing Afcon performance, losing to DR Congo, El Hadidi explained (watch, runtime: 11:25).

Tags:

economy IMF LAST NIGHT’S TALK SHOWS

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EGYPT IN THE NEWS

The Pyramid of Menkaure restoration saga continues

The government’s decision to reassess its controversial pyramid renovation project has caught the attention of the international press: Agence France-Presse picked up a statement from the Tourism Ministry announcing that it has set up a committee to review the project to restore part of the granite later of the Pyramid of Menkaure after it sparked a public outcry. The committee — which is chaired by renowned Egyptian archaeologist Zahi Hawass and includes a team of scientists and engineers hailing from Egypt, the US, Czech Republic, and Germany — is set to advise the ministry on whether to press ahead with the project.

AND- Rui Vitoria gets the boot: After Egypt exited Afcon with an 8-7 loss against DR Congo last week, officials sacked the Pharaohs’ Portuguese manager, Rui Vitoria, the BBC wrote yesterday. We have the details in the news well, above.

Tags:

Egyptology

Also on our Radar

Egyptian government wants to set up more freezones + Gulf Air is launching new flights to Egypt

MANUFACTURING-

Eleven new freezones? The government has prepared a list of sites in 11 cities it plans to offer to investors to establish public freezones in a bid to attract foreign direct investments and boost exports, according to a cabinet statement. The list includes land plots in 10th of Ramadan, New Alamein, Sadat City, New Borg El Arab, New October, New Obour, New Sohag, New Beni Suef, New Aswan, New Tiba, and Capital Garden City.

AVIATION-

Gulf Air announces new flights to Egypt: Gulf Air will launch direct flights to Alexandria and Sharm El Sheikh as well as France’s Nice and Turkey’s Bodrum this June, the Bahraini flag carrier announced on X.

Tags:

ALSO ON OUR RADAR aviation Manufacturing

PLANET FINANCE

China’s fresh promises to rejuvenate its faltering stock market may not be enough

Investors seem to be giving up on China’s stock market: Over 40% of investors surveyed at a Goldman Sachs conference in Hong Kong last week think that Chinese equities are “uninvestable,” despite authorities vowing “forceful” measures to stabilize its falling stock market, the Financial Times reported yesterday.

The measures: The country’s Securities Regulatory Commission said on Sunday that it would introduce more medium- and long-term funds and would crack the whip on short selling and insider trading. This came two days after the benchmark CSI 300 fell 3.4%, Bloomberg wrote.

Triggering the sell off: Chinese and Hong Kong stocks have shed USD 6 tn in value since their peak in February 2021 amid the country’s economic slowdown, spiraling property crisis, and cooler relations with the US.

EGX30	27,574	-3.0% (YTD: +10.8%)
USD (CBE)	Buy 30.83	Sell 30.96
USD at CIB	Buy 30.85	Sell 30.95
Interest rates CBE	21.25% deposit	22.25% lending
Tadawul	11,963	+0.4% (YTD: 0.0%)
ADX	9,456	-0.1% (YTD: -1.3%)
DFM	4,229	+0.2% (YTD: +4.2%)
S&P 500	4,959	+1.1% (YTD: +4.0%)
FTSE 100	7,616	-0.1% (YTD: -1.5%)
Euro Stoxx 50	4,655	+0.3% (YTD: +2.9%)
Brent crude	USD 77.98	+0.8%
Natural gas (Nymex)	USD 2.08	+1.4%
Gold	USD 2,054	-0.8%
BTC	USD 42,793	-0.5% (YTD: +1.4%)

THE CLOSING BELL-

The EGX30 fell 3.0% at yesterday’s close on turnover of EGP 5.1 bn (46.4% above the 90-day average). Local investors were net buyers. The index is up 10.8% YTD.

In the green: Ibnsina Pharma (+11.0%), Juhayna (+10.1%) and Palm Hills Development (+7.5%).

In the red: Alex Containers and Cargo Handling (-11.2%), Oriental Weavers (-9.6%) and Sidi Kerir Petrochemicals (-9.5%).

Leading Asian benchmarks are in the red in early trading this morning as traders digest worries about Chinese stocks and Jay Powell’s remarks that the Fed will be “cautious” when it comes to rate cuts. They’re also looking forward to the Lunar New Year holiday, which runs 10-17 February — and which often sees retail investors sell down positions to have more cash available for the break. Futures suggest stocks on Wall Street and in Europe will follow suit at the opening bell later today.

CORPORATE ACTIONS-

Beltone Financial Holding is set to rebrand to Beltone Holding after the company’s shareholders signed off on the move during a general assembly last week, according to an EGX disclosure (pdf).

Tags:

China Financial Markets Planet Finance

Our weekly deep dive into education in Egypt, from K-12 to post-secondary.

Published every Monday in EnterpriseAM.

Read Blackboard

BLACKBOARD

What is Egypt doing to increase its number of STEM system schools?

Globally, the automation of jobs and technological developments are transforming the way students learn and changing which subjects are valued most in the labor market, writes local education organization Egyptian Education. STEM subjects — science, technology, engineering, and mathematics — provide students with practical skills and knowledge that are not just needed by growing and emerging industries, but are also vital to addressing many of the pressing issues the world faces today, from climate change to preventable diseases.

Enter STEM schools: The STEM education system is an “interdisciplinary and applied program focused on the concept of educating students in four main disciplines: science, technology, engineering, and mathematics,” Egyptian Education explains. STEM schools incorporate the subjects “into a coherent learning system focused on real-world implementations, rather than teaching them as distinct and isolated subjects.”

So, what’s in store locally? Last week, the Education Ministry launched a new USAID grant-supported national project to support the uptake of STEM schools in Egypt during a two-day conference. The conference dived into the future of STEM education in Egypt and ways to develop it with the participation of the private sector, along with both public and private universities.

60:40: The new education strategy wants to prioritize schools that focus 60% on practical studies and 40% on theoretical sciences, a source at the Education Ministry told Enterprise.

Egypt already has over ten years of experience with STEM schools:Egypt’s first STEM system school was the STEM High School for Boys in Sixth of October city, which was established in 2011 and was shortly followed by the Maadi STEM High School for Girls in Maadi in 2012. Now — thirteen years after the creation of Egypt’s first STEM school — there are 11 STEM schools spread across the country in Cairo, Giza, Alexandria, Dakahlia, Kafr El Sheikh, Assiut, Red Sea, Luxor, Menoufia, Ismailia, and Gharbia.

US considers STEM projects fruitful investments: In 2017, USAID agreed on a USD 30 mnproject to build a STEM system network of schools in Egypt and has helped establish 20 STEM system schools in Egypt, the development agency said in a report (pdf). Plus, Egypt and the US have a long history of STEM knowledge sharing, including the establishment of the USAID-backed US-Egypt Science and Technology Joint Fund to support researchers working in STEM, USAID Director Sean Jones said during the Education Ministry’s STEM conference.

Students have the ability to make Egypt a STEM hub: The STEM system is in line with the current ranking of Egyptian students in international science, technology, and mathematics competitions, Private School Owners Association Chairman Badawy Allam told us.

However, awareness is low amongst parents regarding the importance of STEM, which has negatively affected the uptake of STEM subjects and investment towards schools, Allam said.

ICYMI- The country’s educational system is currently undergoing a complete restructuring in line with the education pillar of Egypt’s Vision 2030 plan, which places greater focus on the involvement of the private sector and promoting development, our Education Ministry source told us.

Additional educational models will also be rolled out: The ministry has identified three further educational models on which to expand, our source told us. The ministry wants to expand applied technology schools operated in coordination with private sector institutions, Nile Schools, which provide education services that meet international quality standards at more affordable price points than private international schools, and schools for outstanding students.

Vocational education is also getting a push: The Labor Ministry announced the launch of an initiative — dubbed Mehany 2030 — to train and qualify 1 mn young Egyptians for local and foreign vocational markets, according to a Labour Ministry readout. The initiative is aiming to train at least 27k individuals in its first phase, with at least 1k trainees from each governorate and integrate at least 50 private training centers into the initiative.

SO, WHAT’S NEEDED FOR MORE STEM SCHOOLS IN EGYPT-

A STEM school in every governorate: The Education Ministry wants to establish a STEM school in each of the country’s 27 governorates. In addition to the 11 currently operating STEM schools, four new schools are under construction in Sharkia, Qalyubia, Beni Suef, and Qena.

More schools means more teachers: Egypt lacks a sufficient volume of STEM-trained teachers, Allam told us. Growing the number of specialist STEM teachers and school leaders will help strengthen the relationship between the Education Ministry and institutions, Education Minister Reda Hegazy said.

Scholarships to promote STEM: The new initiative will use scholarships to encourage students to study subjects at university that meet the requirements and needs of local and global labor markets.

Cut the red tape: Private schools require government-issued licenses to establish STEM systems, with only five private sector schools currently operating along the model in Egypt, Allam told us. The government should allow private and international schools to allocate a limited number of classrooms following the STEM system via a written request, which would only need government approval and not result in additional fees or licenses, Allam added.

Your top education stories for the week:

The Madbouly government has loosened regulations on private language schools with the aim of encouraging smaller players to invest in education. The government has reduced the minimum plot size for planned schools to 1.2k sqm, down from 2.5k sqm. (Statement)
Six Egyptian universities made it on Webometrics’ list of top 1k universities across the world. Alexandria University and Cairo University lead the pack by making into the university ranking organization’s top 500 establishments. (Statement)

Tags:

Blackboard Education Ministry Reda Hegazy STEM

CALENDAR

2024

FEBRUARY

8 February (Thursday): Deadline to apply to Shalateen Mining Company’s international gold exploration tender.

11 February (Sunday): Deadline to apply for the Chicago Booth Executive Programin El Gouna.

15-16 February (Thursday-Friday): Brazilian President Luiz Inácio Lulada Silva meets with President El Sisi in Cairo.

19-21 February (Monday-Wednesday): Egypt Energy Show, Egypt International Exhibition Center

25 February 2024 (Sunday): Deadline to bid for 23 blocks in an international oil and gas tender.

MARCH

10 March (Sunday): First day of Ramadan (TBC).

20 March (Wednesday): End of sugar export ban.

28 March (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

29 March (Friday): Egypt removed from JPMorgan Chase’s Emerging Local Markets Index Plus.

APRIL

9 April (Tuesday): Eid El Fitr (TBC) (national holiday).

15-21 April (Monday-Sunday): The IMF / World Bank Spring Meetings.

25 April (Thursday): National holiday in observance of Sinai Liberation Day (TBC) (national holiday).

28 April (Sunday): Grace period to ins. brokerage firms to comply with Law 215 for 2023 expires.

28-29 April (Sunday-Monday): Saudi Arabia hosts a World Economic Forum (WEF) meeting on ‘global collaboration, growth, and energy.’

29 April (Monday): The government’s car export scheme expires.

MAY

1 May (Wednesday): National holiday in observance of Labor Day (TBC) (national holiday).

5 May (Sunday): Coptic Easter.

6 May (Monday): Sham El Nessim (national holiday).

23 May (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

29 May (Wednesday): Virtual launch of Chicago Booth Executive Program.

JUNE

15-19 June (Saturday-Wednesday): Eid El Adha (TBC) (national holiday).

30 June (Sunday): June 30 Revolution Day (national holiday).

JULY

7 July (Sunday): National holiday in observance of Islamic New Year (TBC).

18 July (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

23 July (Tuesday): Revolution Day (national holiday).

SEPTEMBER

2-5 September (Monday-Thursday): Egypt International Airshow, El Alamein International Airport.

5 September (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

15 September (Sunday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

25-26 September (Wednesday - Thursday): The Asian Infrastructure Investment Bank’s (AIIB) 2024 annual meeting, Samarkand, Uzbekistan.

OCTOBER

6 October (Sunday): Armed Forces Day.

17 October (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

21-27 October (Monday-Sunday): The World Bank and IMF annual meetings.

NOVEMBER

21 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

DECEMBER

26 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

EVENTS WITH NO SET DATE

January 2024: The Red Sea Ports Authority is set to finalize an agreement with the Abu Dhabi Ports Group for the operation and maintenance of the tourist passenger terminal in the Sharm El Sheikh Sea Port.

February 2024: Egypt will sign a USD 1.5 bn financing agreement with the International Islamic Trade Finance Corporation (ITFC).

February 2024: Funds from the Islamic Development Bank for the high speed electric railway will get the sign off.

1Q 2024: Egyptian-Qatari Joint Supreme Committee.

1Q 2024: Opening of the newly developed Pyramids Plateau in Giza.

February-May: The Grand Egyptian Museum could officially open to visitors.

June 2024: Gov’t expects to finalize sale of Beni Suef combined-cycle power plant.

1H 2024: Gov’t expects to finalize sale of four water desalination plants.

1H 2024: The European Union is set to hold an investment conference in Egypt during spring.

2H 2024: Gov’t to launch the Cairo Ring Road BRT buses.

November 2024: Egypt to host the World Urban Forum (WUF12).

End of 2024: The launch of the high-speed train line linking Ain Sokhna with Al Alamein City.

2024: Standard Chartered Bank to open a branch in Egypt.

2025

EVENTS WITH NO SET DATE

2Q 2025: Safaga Terminal 2 to start operations.

2027

EVENTS WITH NO SET DATE

End of 2027: Trial operations at the Dabaa nuclear power plant expected to take place.

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